Tata Capital Charges Up: ₹318B in Equity and Green Bonds Before the Big IPO Debut

Tata Capital Ltd made a bold twin-capital plan to strengthen its balance sheet and power future growth. The company will mobilize ₹17.52 billion via rights issue of equity shares and has also got board approval to raise Non-Convertible Debentures (NCDs) and Green Bonds to a total of ₹300 billion through private placement. All this is happening when Tata Capital is preparing for its long-awaited IPO, in advance of Reserve Bank of India's September 2025 deadline for listing top-layer NBFCs.

Rights Issue Snapshot

Amount: ₹17.52 billion
Mode: Rights issue of equity shares
Purpose: Shore up capital base before IPO
Earlier Round: ₹1,504 crore in March 2025, with ₹1,400 crore coming from Tata Sons

Debt Instruments Scheme

Total Debt Raise: Up to ₹300 billion

Instruments:

Green Bonds
Market-linked NCDs
Secured Redeemable NCDs with liquidity window

Aim:

On-lending
Operational expansion
Sustainable finance initiatives (e.g., renewable energy, clean transport)

Strategic Context

IPO Timeline: Aiming before September 2025
Regulatory Mandate: RBI mandates listing of upper-layer NBFCs
Ownership: Tata Sons: 93% holding; not expected to fall below 75% post-IPO
Merger in recent past: Tata Motors Finance was merged with Tata Capital, enhancing asset base

Financial Highlights (FY25)